A Google software engineer has been charged by US authorities with fraud for allegedly leveraging insider information to secure over $1.2 million in winnings from bets placed on the prediction market platform, Polymarket.
Michele Spagnuolo, an Italian national residing in Switzerland, stands accused of utilizing confidential data to wager on the outcomes of Google’s annual “most-searched” list. This information comes from a criminal complaint unsealed on Wednesday.
Prosecutors in the US allege that Spagnuolo employed an account named “AlphaRaccoon” to execute trades across various markets tied to the results of Google’s 2025 “Year in Search.” The complaint, lodged in a New York federal court, indicates the total value of these bets was approximately $2.75 million.
Among his successful wagers, Spagnuolo reportedly predicted that indie pop musician d4vd would top the list for the most-searched person last year. This prediction was made just hours after he accessed confidential data at Google, according to the prosecution.
The 36-year-old Spagnuolo faces charges including commodities fraud, wire fraud, and money laundering. Jay Clayton, the US Attorney for the Southern District of New York, emphasized in a statement, “Today’s charges reinforce a decades-old message: corporate insiders cannot use confidential business information to turn a profit in our markets.” He added, “Insider trading compromises the integrity of our markets, and the American people want this greed-driven conduct investigated and prosecuted.”
Google has confirmed its cooperation with law enforcement, stating that the use of confidential information for betting purposes constitutes a severe violation of company policy. A Google spokesperson confirmed that Spagnuolo has been placed on leave.
A spokesperson for Polymarket stated that the company collaborated closely with the US Attorney’s Office during the investigation. They highlighted that Polymarket “is the only prediction platform to date whose cooperation has led to insider trading charges in the United States,” reaffirming their commitment to “maintaining accurate, fair, and transparent markets as well as enforcing our rules and working with our regulators and law enforcement.”
This incident follows a similar case last month, where a US soldier was charged for using classified military intelligence to place bets on Polymarket concerning the potential abduction of Venezuelan President Nicolas Maduro. Prosecutors accuse Gannon Ken Van Dyke, 38, of profiting over $400,000 from wagers related to the US operation against Maduro.
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